At Exness, we provide competitive trading conditions to build sustainable and long-term relationships with traders. This includes providing Essential and Enhanced Protection Tools. Let’s explore these features:
Essential Protection Tools
Negative Balance Protection
When a trade results in a negative balance for a trading account, Negative Balance Protection allows the negative amount owed to be dissolved thus resetting the trading account’s balance to zero.
Negative balance protection ensures that no matter how much loss a trader experiences, they will never owe money; losses are limited only to the trading account’s balance, and no more.
For more information on Negative Balance Protection, click here.
0% Stop Out
Stop out is essentially the automatic closing of orders when the trader’s margin level drops to the stop out level of 0%.
To better understand how this works, read more about Margin Call and Stop Out levels for the various account types.
Enhanced Protection Tools
Stop Out Protection
Stop Out Protection calculates a “virtual mid-price equity” which can protect against a stop out. It essentially divides bid and/or ask prices by 2 (bid+ask /2) and calculates a discount of half the spread (spread x number of lots /2) for each open order before checking for stop out.
This applies in cases of sudden spread widening, where the bid price goes down abruptly as the ask price goes up while the mid-price stays the same.
In some cases, when Stop Out Protection is abused and not used as a protection tool, Exness reserves the right to revoke this from a client’s account.
For account types with commissions, half of one side of the commission is discounted in addition to the current spread discount. Do note that this feature may not be available for some accounts with Unlimited Leverage to achieve a balance between trader benefits and risks. Get to know the requirements for unlimited leverage in this article.
For more information on Stop Out Protection, read more here.
Price Gap Protection
Price Gap Protection is used to limit slippage for pending orders and is applied when the price of your pending order falls inside a price gap due to volatility or other factors.
This protection is applied if the difference in pips between the first market price (after the gap) and the requested price of your order is equal to or exceeds a certain number of pips (Gap Level) for a particular instrument, your order will be executed at the first market price after the gap. If the difference is less than the Gap Level, your order will be executed at your requested price.
This feature applies to the following account types: Standard Cent, Standard, Pro, Standard Plus, Raw Spread, and Zero accounts.
For more information and examples on Price Gap Protection, head here.
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